Vroom, Inc. AI Stock Analysis
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Vroom, Inc. (VRM) AI Stock Analysis
Vroom, Inc.
(NASDAQ:VRM)
Vroom scores low primarily because of a highly leveraged and fragile balance sheet — roughly $777 million of debt against $91 million of equity (~8.5x leverage) — combined with continued bottom-line losses that widened in the latest TTM period. Technicals reinforce the caution, with the stock trading below all major moving averages and a negative MACD signalling a persistent downtrend, while a negative P/E and absence of any dividend leave valuation support thin. The offsetting positives are genuine: a transformed revenue mix with ~73% gross margins and ~48% growth, positive EBITDA, and a decisive swing to positive operating and free cash flow after years of heavy burn. This remains a high-risk turnaround that depends on continued execution and reliable access to securitization and insider-backed funding.
Vroom, Inc. (VRM) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $36.66M
- Dividend Yield
- ―
- Average Volume (3M)
- 26.11K
- Price to Earnings (P/E)
- -0.9
- Beta (1Y)
- 0.91
- Revenue Growth
- 183.44%
- EPS Growth
- 59.16%
- Country
- US
- Employees
- 652
- Sector
- General
- Sector Strength
- 55
- Industry
- Financial - Credit Services
Vroom, Inc. Business Overview & Revenue Model
Company Description
Vroom, Inc. operates as an online automotive retail platform, focusing on the sale of pre-owned vehicles throughout the United States. The company offers a comprehensive digital ecosystem that manages all aspects of the car ownership journey, from ac...
Vroom, Inc. Financial Statement Overview
Summary
Mixed picture dominated by balance sheet fragility. The income statement (38) shows a much higher-quality revenue mix after the pivot to lending and data — ~48% TTM revenue growth, ~73% gross margin and positive EBITDA of $52.1 million — but the company remains unprofitable with a TTM net loss of $40.4 million that widened versus the prior period. The balance sheet (28) is the weakest link: $777.2 million of debt against only $91.1 million of equity implies ~8.5x leverage, with debt at over 80% of assets and ROE near -40%, leaving minimal cushion against credit or funding stress. Cash flow (66) is the clear bright spot, with TTM operating cash flow of $79.3 million and free cash flow of $73.5 million after years of heavy burn, though in a lending model this is sensitive to origination and securitization timing and must still be proven across a full credit cycle.
Income Statement
38NegativeBalance Sheet
28NegativeCash Flow
66Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 156.01M | 112.27M | 11.61M | 893.20M | 1.95B | 3.18B |
| Gross Profit | 114.05M | 91.13M | 11.61M | 161.95M | 244.79M | 202.10M |
| EBITDA | 52.05M | 50.41M | -43.11M | -185.66M | -392.19M | -334.99M |
| Net Income | -40.38M | -7.96M | -165.12M | -365.54M | -451.91M | -370.91M |
Balance Sheet | ||||||
| Total Assets | 952.26M | 937.38M | 1.07B | 1.48B | 1.62B | 2.37B |
| Cash, Cash Equivalents and Short-Term Investments | 32.98M | 10.38M | 29.34M | 140.07M | 419.51M | 1.13B |
| Total Debt | 777.17M | 779.49M | 752.34M | 1.23B | 985.76M | 1.14B |
| Total Liabilities | 820.49M | 820.77M | 1.10B | 1.35B | 1.14B | 1.45B |
| Stockholders Equity | 91.07M | 116.62M | -30.95M | 122.15M | 475.24M | 915.19M |
Cash Flow | ||||||
| Free Cash Flow | 73.53M | 68.09M | -100.52M | -536.31M | -133.30M | -597.10M |
| Operating Cash Flow | 79.29M | 75.15M | -97.04M | -533.68M | -109.06M | -568.69M |
| Investing Cash Flow | -105.72M | -108.17M | 132.57M | 173.15M | -164.21M | -104.29M |
| Financing Cash Flow | 50.26M | 37.88M | -165.99M | 97.34M | -469.49M | 797.71M |
Vroom, Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRM, the sentiment is Negative. The current price of 6.95 is below the 20-day moving average (MA) of 7.51, below the 50-day MA of 8.77, and below the 200-day MA of 11.09, indicating a bearish trend. The MACD of -0.55 indicates Negative momentum. The RSI at 36.23 is Neutral, neither overbought nor oversold. The STOCH value of 40.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRM.
Vroom, Inc. Risk Analysis
Vroom, Inc. disclosed 60 risk factors in its most recent earnings report. Vroom, Inc. reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksVroom, Inc. Peers Comparison
Overall Rating
CARG81Outperform
CVNA68Neutral
AN58Neutral
KMX58Neutral- VRM41Neutral
UXIN40Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CARG | 81Outperform | $3.10B | 17.41 | 62.43% | ― | 7.29% | 33.39% |
| CVNA | 68Neutral | $79.84B | 23.51 | 43.91% | ― | 50.28% | 157.02% |
| AN | 58Neutral | $5.69B | 8.44 | 31.76% | ― | -1.77% | 22.76% |
| KMX | 58Neutral | $7.55B | 24.98 | 4.80% | ― | 4.09% | -40.01% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| VRM | 41Neutral | $36.66M | -0.87 | -39.79% | ― | 183.44% | 59.16% |
| UXIN | 40Underperform | $177.90M | -2.77 | 73.63% | ― | 97.00% | -42.04% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| VRM | Vroom, Inc. | 6.95 | -13.26 | -65.61% | |
| AN | AutoNation Inc | 177.75 | -15.45 | -8.00% | |
| KMX | CarMax Inc | 53.22 | 21.11 | 65.74% | |
| CVNA | Carvana | 72.37 | 7.75 | 11.99% | |
| CARG | Cargurus | 34.81 | -0.16 | -0.46% | |
| UXIN | Uxin Limited | 0.81 | -2.02 | -71.45% |
Vroom, Inc. Corporate Events
Vroom Reports Third-Quarter 2026 Results and Liquidity
NegativeOn November 10, 2026, Vroom, Inc. announced results for the quarter ended September 30, 2026. The company reported $91.1 million in stockholders’ equity, $80.2 million in tangible book value, $64.2 million in total available liquidity, and a $9.8 mil...
Vroom Expands Insider-Backed Convertible Notes Financing Capacity
PositiveOn October 15, 2026, United Auto Credit Corporation executed an asset-backed securitization involving approximately $292.1 million in subprime auto receivables, transferring them through a special purpose depositor into United Auto Credit Securitizat...
Vroom Raises $20 Million via Preferred Equity Financing
PositiveOn September 30, 2026, Vroom Automotive, LLC issued 16,000 Series A1 preferred units and 4,000 Series B1 preferred units to SPE Holdings 2026-1 for gross proceeds of $20 million, under newly updated LLC and purchase agreements. The preferred units ca...
Vroom Extends Warehouse Credit Facility Commitment Termination Date
PositiveOn August 26, 2026, Vroom, Inc.’s subsidiaries United Auto Credit Corporation and UACC Auto Financing Trust V executed an eleventh amendment to their Amended and Restated Warehouse Agreement with Capital One, N.A. as administrative agent. The amendme...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 13, 2026